"Kalshi may brand itself as a 'prediction market,' but what it's actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law. No company gets to decide for itself which laws to follow."
"The 20-count complaint, filed in Maricopa County court on Tuesday, accuses the company of engaging in unlicensed gambling activities, claiming that the site accepted bets from Arizona residents on a wide range of events, including state elections, a practice that is illegal in Arizona."
"Prediction sites like Kalshi have argued that they are not in violation of state law because they are subject to federal regulation via the Commodity Futures Trading Commission."
Arizona Attorney General Kris Mayes filed criminal charges against prediction market platform Kalshi, accusing it of operating an illegal gambling business without a license and accepting bets on elections. The 20-count complaint includes four counts of election wagering for accepting bets on the 2028 presidential race and three Arizona 2026 races. Mayes stated that Kalshi operates as an illegal gambling operation despite branding itself as a prediction market. This marks the first state to pursue such charges against the company and represents escalation in the conflict between states and the prediction market industry. Kalshi argues it operates under federal Commodity Futures Trading Commission regulation and does not violate state law.
Read at TechCrunch
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